Banks and Cannabis: The Search For a Practical Payment Solution
If you operate a cannabis-oriented business, then you know how difficult it is to find a suitable payment solution. Most banks have closed their doors to the cannabis industry, leaving a massive $55 million market to sort its money woes on its own. While banks are paralyzed with the decision to do business with the marijuana industry, InclusivePay is at the forefront of credit card processing for cannabis dispensaries.
How InclusivePay is Changing the Face Cannabis-Based Credit Card Payments
Before InclusivePay, the only method for cannabis-related businesses was through cash. A cash-based business presents a significant amount of risk on the part of the merchant because of the inherent dangers of holding vast cash reserves. Cash-only based companies are also not considered compliant with regulators, due to a lack of transparency.
Banks far and wide have kept their distance from doing business with cannabis dispensaries, refusing to allow them access to a marijuana merchant account. This account would enable cannabis businesses and their customers the flexibility of credit card and debit payments. As our society continues to move in a cashless direction, customers are left to bear the hassle of needing to withdraw cash to make a purchase.
InclusivePay understands that to remain compliant with regulators, a closed loop payment system must be used. This is why an e-wallet, similar to that of Chase’s Quickpay with Zelle, is utilized for cannabis payments. This peer-to-peer method is basic in nature but allows merchants to receive payments instantly from a customers credit card.
Through InclusivePays secured e-wallet, customers will pay the merchant with a debit or credit card, and the payment will be routed through the closed loop network. The user experience will be no different from that of any other point of sale transaction. The amount will process then and there, and both the merchant and customer will receive what they are due.
The Need for Marijuana Credit Card Processing
InclusivePay’s cashless solution to provide a reliable marijuana merchant account couldn’t have come at a better time. Local banks are still at a standstill regarding the difficulty posed by federal banks and the federal government. Although Barack Obama issued updated guidelines in 2014 allowing banks to do business with medical marijuana businesses; the majority of financial institutions have decided to not move forward with it.
As the industry continues to multiply, InclusivePay is making it possible for merchants to accept credit and debit card payments, pay vendors in the supply chain, issue e-checks to pay for expenses, and customize sales and payment information to remain transparent and compliant with regulators.
Without a solution such as InclusivePay’s e-wallet, marijuana merchants would be left alone to run the risks of having a cash-based business. Credit card processing is a lifeline to business, especially in any type of commerce.
On the side of regulators, by not allowing credit card payments for marijuana dispensaries, they run the risk of enabling rampant tax evasion, fraud, theft, the inability of tracking payments, and the failure to verify sales reporting.
Overall, the solution offered by InclusivePay not only benefits every cannabis merchant, but it also helps regulators. Once merchants are able to do business as usual, regulators will have an easier time collecting taxes and managing the oversight of the cannabis industry. InclusivePay’s solution is a win-win for the countless number of workers in the marijuana sector, as well as streamlining compliance for regulators.